GENAI ANNOUNCES RESIGNATION OF AUDITOR AND WITHDRAWAL OF AUDIT REPORT

Rhea-AI Summary

Generative AI Solutions Corp (AICOF) announced its former auditor, Manning Elliott LLP, resigned effective September 29, 2025 and withdrew the auditor's report dated May 30, 2024 on the consolidated financial statements for the year ended January 31, 2024. The company reported reportable events under NI 51-102 arising from disagreements over valuation, accounting treatment, and economic rationale for certain 2024 transactions.

The board and audit committee accepted the resignation, are seeking a successor auditor, and will file the Notice of Change of Auditor and the auditor's response on SEDAR+. A failure-to-file cease trade order issued by the BCSC on August 6, 2025 remains in effect, keeping AICOF suspended from trading on the Canadian Securities Exchange until a successor auditor is appointed and required 2025 filings are completed.

Positive

• Board and audit committee accepted auditor resignation promptly
• Company commits to appointing a successor auditor in short order
• Notice and auditor response will be filed on SEDAR+

Negative

• Former auditor withdrew audit report dated May 30, 2024
• Auditor cited insufficient evidence for valuation/accounting of 2024 transactions
• Failure-to-file cease trade order by BCSC since August 6, 2025
• Common shares suspended from trading on Canadian Securities Exchange until filings complete

VANCOUVER, BC, Oct. 6, 2025 /PRNewswire/ - Generative AI Solutions Corp. ("GenAI" or the "Company") (CSE: AICO) (OTCQB: AICOF) announces that its former auditor, Manning Elliott LLP ("Former Auditor"), has informed the Company that, effective September 29, 2025, it has resigned as the Company's auditor and has withdrawn its audit report dated May 30, 2024 (the "Audit Report") on the Company's consolidated financial statements for the year ended January 31, 2024 (the "2024 Financial Statements"), and as a result the Audit Report should no longer be relied upon.

The Company's board of directors and audit committee have accepted the resignation and are in the process of appointing a successor auditor in accordance with the requirements of National Instrument 51-102 – Continuous Disclosure Obligations ("NI 51-102"). The Company expects to fill the vacancy in short order.

There exist reportable events (as defined in NI 51-102) relating to disagreements and unresolved issues between the Company and the Former Auditor concerning certain aspects of the 2024 Financial Statements. Specifically, the Former Auditor expressed the view that there was insufficient audit evidence to support the valuation, accounting treatment, and economic rationale for certain transactions reflected in the 2024 Financial Statements. The board of directors and the audit committee of the Company discussed these matters with the Former Auditor however the issues were not resolved.

The Company is complying with all applicable requirements under NI 51-102 in respect of the Former Auditor's resignation and the corresponding Notice of Change of Auditor (the "Notice"). The Notice, together with the Former Auditor's response, will be made available on the Company's profile on SEDAR+ (www.sedarplus.ca). The Company will issue a further press release and make the necessary filings under NI 51-102 once a successor auditor has been appointed.

The Company remains subject to the failure-to-file cease trade order ("FFCTO") issued by the British Columbia Securities Commission ("BCSC") on August 6, 2025, which prohibits trading in the Company's securities in Canada. The FFCTO was issued as a result of the Company's delay in filing its annual financial statements and management's discussion and analysis for the fiscal year ended January 31, 2025 (the "2025 Filings") by the prescribed deadline of May 31, 2025.

It is anticipated that the FFCTO will remain in effect until such time as a successor auditor is appointed and the 2025 Filings, together with the audit report of the successor auditor for the fiscal year ended January 31, 2024, are completed and filed. While the FFCTO remains in effect, the Company's common shares will remain suspended from trading on the Canadian Securities Exchange.

On Behalf of the Board,

Patrick Gray
CEO, Director and Chairman of the Board

Generative AI Solutions Corp.
Toll-free North America: +1-833-879-7632
Outside North America: +1-406-879-7632
info@genai-solutions.com
www.genai-solutions.com

About Generative AI Solutions Corp.

GenAI is an artificial intelligence company focused on developing a vertically integrated AI solutions business through its proprietary MAI Cloud™platform, with the development and commercialization of AI-powered tools and solutions for businesses and consumers across multiple industries.

For more information on GenAI, please visit www.genai-solutions.com.

Forward-Looking Information and Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking statements.

Generally, such forward-looking information or forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved".

Forward-looking information in this news release are based on certain assumptions and expected future events, namely: the Company's ability to continue as a going concern; the Company's ability to continue to develop revenue generating applications; continued approval of the Company's activities by the relevant governmental and/or regulatory authorities; and the continued growth of the Company; and Company's ability to continue to meet the requirements of listing of the CSE.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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SOURCE Generative AI Solutions Corp.

FAQ

Why did Manning Elliott resign as auditor for AICOF on September 29, 2025?

Manning Elliott resigned citing disagreements and insufficient audit evidence for certain 2024 financial statement transactions.

What does the withdrawn May 30, 2024 audit report mean for AICOF shareholders?

The withdrawn report should no longer be relied upon; the company must appoint a successor auditor and refile audited statements.

Is AICOF trading suspended and when will trading resume on the Canadian Securities Exchange?

Trading is suspended under a BCSC cease trade order issued August 6, 2025; it will remain until a successor auditor is appointed and required filings are completed.

What filings will AICOF need to lift the BCSC failure-to-file cease trade order?

A successor auditor's appointment plus the audited 2025 filings and the successor auditor's audit report for year ended January 31, 2024.

Where will AICOF publish the Notice of Change of Auditor and the auditor response?

The Notice and the former auditor's response will be posted on SEDAR+ under the company's profile.

How long does AICOF expect to appoint a successor auditor for AICOF?

The company stated it expects to fill the auditor vacancy in short order but provided no specific timeline.